The impending sale of the Barrington Mews, a subsidized living complex in Camden County, has left residents disgruntled and municipal officials confused.
Mayor Kyle Hanson said he and fellow officials had been in conversation with complex owners at Barrington Partners LP and managers at AAH Management for majority of the past year about a tax abatement agreement. They had given no indication that a sale was imminent.
Instead, Barrington Mews owners filed for a five-year extension of their tax abatement agreement with the municipality in February of 2024, which would allow them to continue to avoid property taxes to the borough while operating as a subsidized living complex servicing mainly senior and disabled tenants.
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“(It) was a shock to us,” Hanson said.
Borough officials were on board with the extension, which would pick up after the complex’s 30-year payment in lieu of taxes, aka PILOT, program from the state expires at the end of the month.
The program has allowed property owners to pay the municipality a percentage of their annual rent revenue instead of property taxes. This percentage was determined by a state statute and sat at approximately 4.5% last year, borough Clerk Terry Shannon said.
Based on rate breakdowns as of December, the one-and-two-bedroom apartments are open to residents with an annual gross income of between $16,000 and $55,080. Monthly rent ranges between $581 and $862, depending on the floor plan.
An ordinance outlining the approval of the extension is scheduled to be voted on during a council meeting the evening of Tuesday, Dec. 10. The agreement indicates that this percentage would increase to 6% under the municipality, should the extension go through.
The ordinance would not allow for the tax break to continue if the owners of the property began charging at market rate.
Despite this request from the property owners, a sale now looms over the heads of approximately 300 tenants. They were formally notified by building management Friday, Dec. 6 that a new owner will be taking over the property in February, with potentially hefty rent increases on the horizon.
The identity of the presumed buyer has yet to be officially confirmed. Camden County’s property records website doesn’t list a change of ownership for the 2101 Reamer Drive address.
Hanson, however, said the borough was recently contacted by representatives of Axial Partners and Hudson Atlantic, who could be potential buyers.
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The meeting for tenants, originally scheduled for 2 p.m. Dec. 6 in a community room of the apartment complex, took place in two parts beginning at 1 p.m. because of high attendance.
While a Courier-Post reporter wasn’t permitted enter, residents who gathered outside confirmed that they were told their subsidized rents would increase to market value at the expiration of their leases beginning in February.
Camen County spokesperson Dan Keashen attended the meeting on Friday along with Hanson and Barrington Councilwoman Melanie Mercado-Miller, director of the borough’s health department and senior services division.
The meeting, Hanson said, was led by building management. Property owners, both current and prospective, were not present.
Hanson said he’s made calls to U.S. Rep. Donald Norcross (D-NJ) and multiple state agencies, including the New Jersey Department of Community Affairs, to determine how to assist residents moving forward.
County officials are also providing residents with access to Senior Citizens United Community Services.
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As February approaches, some Barrington Mews residents and their caretakers are scrambling to find alternative housing options.
According to an employee of the county’s senior services division, wait times for other subsidized living complexes and facilities are a year or longer, which doesn’t bode well for tenants whose leases could expire in a matter of months.
“This is a nationwide issue,” Keashen said of subsidized housing and the overall cost of living.
Kaitlyn McCormick writes about trending issues and community news across South Jersey for the Courier-Post, The Daily Journal and the Burlington County Times. If you have a story she should tell, email her at kmccormick@gannett.com. And subscribe to stay up to date on the news you need.
This article originally appeared on Cherry Hill Courier-Post: Is Barrington Mews being sold? Camden County officials say probably.